HCL Technologies Q1: Net profit falls 11% QoQ, board declares interim dividend of ₹12 for FY26

The Noida-based company’s revenue from operations for the first quarter of the financial year 2025-26 edged up marginally by 0.3% to ₹30,349 crore as compared to ₹30,245 crore quarter-on-quarter (QoQ).

In terms of constant currency (CC), the tech firm’s revenue was down 0.8% QoQ but rose 3.7% year-on-year (YoY).

HCL Tech’s dollar revenue for the quarter stood at $3,545 million, growing 1.3% QoQ and 5.4% YoY.

For Q1 FY26, the earnings before interest and taxes (EBIT) decreased 9.2% to ₹4,942 crore as against ₹5,442 crore in Q4 FY25.

In the reporting quarter, the EBIT margin also fell to 16.3% compared to 18% QoQ.

HCL Technologies’ board of directors has also declared an interim dividend of ₹12 per share for the financial year 2025-26. “The Board of Directors has declared an interim dividend of ₹12 per equity share of ₹2 each of the company for the financial year 2025-26,” the company said in a regulatory filing.

The record date for the payment of the interim dividend has been fixed for July 18, 2025.

Ahead of the earnings announcement, HCL Technologies shares settled at ₹1,613.50 apiece on the National Stock Exchange, falling 1.51%.

The IT major’s total headcount was reported at 223,151, with 1,984 freshers hired during the quarter.

HCL Technologies expects revenue growth for FY26 to be between 3% and 5% YoY in constant currency terms. Its services revenue growth is also expected to be between 3% and 5.0% YoY in CC terms.

The company sees the EBIT margin to be between 17% and 18% for the present financial year.

Commenting on the earnings, HCL Tech’s Chairperson Roshni Nadar Malhotra said, “AI has become integral to business growth of global enterprises. HCLTech’s capabilities and strategic partnerships ensure our AI-led solutions are practical, comprehensive, and significant value creators to our clients. We also remain intensely focused on the ethical deployment of AI and maximizing its positive social impact.”

During the reporting quarter, the tech firm has bagged multiple orders related to artificial intelligence (AI) and GenAI. However, the company’s margin was impacted by additional AI and GTM investments.

“Our operating margin came at 16.3%, impacted by lower utilisation and additional Gen AI and GTM investments. Our AI propositions are resonating well with our clients and have been augmented further by our partnership with OpenAI. Our pipeline continues to grow as the demand environment was stable during the quarter,” said CEO and Managing Director C Vijayakumar.